How to cut your Interchange fees with Level 2/3 data

U.S. businesses can reduce Interchange fees by submitting more data for each online transaction.

Do you sell to business customers online in the U.S.? If so, read on.

By submitting Level 2/3 data you can cut your Interchange rates by up to 90 basis points. At the same time, your clients will benefit from the extra data they receive about their purchases.

Related: Learn more about Interchange fees.

What is Level 2/3 data?

Card issuers are incentivizing businesses to submit more data relating to tax and product or service. They will then pass this onto cardholders (your customers) as an added value.

This is Level 2/3 data.

  • Level 2 data is the tax information related to each transaction.

  • Level 3 data includes tax information and line item details like product quantity and product description.

With this, the card issuers can provide customers with in-depth information. Customers can also integrate with the issuer directly.

By doing this, they'll receive the information in their enterprise resource management (ERM) or accounting systems.

How do you submit Level 2/3 data?

This incentive is applicable for eligible cards. These include business, commercial, corporate and purchasing cards, which are issued to companies for business-related expenses.

If you’re an Adyen customer, you'll need to build the functionality to submit the Level 2/3 data in the API call, for either the authorization or the capture request.

Data can be submitted for each transaction, after which Adyen determines whether to pass the data on based on eligibility of the card.

Note: You can only submit Level 2/3 data via Adyen’s API interface as part of the authorization or capture calls. This service only applies to ecommerce transactions and is not available to all Adyen customers. Check our Merchant Category Code (MCC) exclusion list to see if you're eligible.

To learn more about lowering your Interchange fees, see our documentation. You can also speak to your account manager, or click below to contact sales support.